Final results from VCTV market trial show increased usage, continued customer satisfaction.

LITTLETON, Colo.--(BUSINESS WIRE)--Nov. 21, 1994--Usage of services offered in the world's largest completed video-on-demand trial increased 12 percent during the test's second and final phase, AT&T, Tele-Communications, Inc., and U S WEST said today.

All three companies said the trial succeeded in demonstrating how consumers respond to advanced delivery of entertainment directly to homes.

Although the Viewer-Controlled Cable Television trial has been completed, trial participants continue to receive services from TCI as part of a subsequent test of additional features.

Customers in the second phase of the VCTV trial ordered 2.8 movies a month, compared with 2.5 movies a month during the first phase.

During the two-year trial, two services were tested. The first, "Hits at Home," was an enhanced pay-per-view service that offered between six and eight movies and other programming at any given time. The most popular programs started at half-hour intervals. The second service, "Take One," allowed customers to view any of 1,400 movies whenever they chose.

During phase one, 150 homes had access to Hits at Home, and a separate 150 had access to Take One. During phase two, both groups had access to both services.

The proportion of households using the services during both phases remained constant. About 70 percent of those connected to the services used them each month. Viewers were charged between $.99 and $3.99 for each movie they watched.

In November 1993, the companies reported some of the results from the first phase, including a usage rate of both services at twelve times the national pay-per-view buy rate as projected by Paul Kagan Associates.

As in phase one, the services were offered both to customers who already subscribed to cable services and to those who did not.

And about 90 percent of the trial participants said VCTV met or exceeded their expectations in providing good value for the money. They cited convenience as the key benefit of the services.

The VCTV test was announced in May 1991. Phase one began in July 1992. Phase two began in July 1993 and was completed in June 1994.

AT&T Network Systems is one of the world's largest manufacturers and providers of network telecommunications equipment and professional services. It offers communications service providers virtually everything they need to build and operate their networks.

TCI is the nation's largest cable television operator, serving 10.9 million customers in 48 states, Puerto Rico and the District of Columbia. It also has cable operations and programming interests in several foreign countries.

U S WEST is in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. In February, U S WEST became the first regional Bell company to commit to building an interactive, multimedia network in the 14 Western states it serves.

In May 1993, U S WEST became the first large American telecommunications company to announce a domestic strategic alliance with a media company, Time Warner Entertainment. In July 1994, U S WEST announced it would acquire two cable partnerships in the Atlanta area, Wometco and Georgia Cable Television.

CONTACT: Jeanne Snell, AT&T, 303-290-5652

              Lela Cocoros, TCI, 303-267-5273
              Steve Lang,  U S WEST, 303-754-5441